FAQ – Home Loan Modifications & Foreclosure FAQ

FAQ – Home Loan Modifications
In these difficult financial times, you may be in a desparate situation, trying to keep a roof over your family.  However, the Feldman Law Center urges you to become educated about all possible options to avoid foreclosure, especially a home loan modification.  The following FAQ section is designed to give you the information you need to understand California home loan modifications and federal home loan modifications.
What is a home loan modification?
A Loan Modification is a permanent change in one or more of the terms of a home loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.
Can you help unemployed homeowners?
Unfortunately, no.  You will need some source of income to qualify for a home loan modification.
Do you count the income of people who are living in the home, but are not on the title?
Yes.  The Feldman Law Center considers the total income of the  household, not just the homeowner.
Is it necessary that I be delinquent or behind on my mortgage to qualify for a home loan modification?
No it is not, but that will make things easier.  A home loan modification is designed to help people in financial hardship.  Lenders are usually more apt to help people in financial duress to restructure their mortgages.
Does the Feldman Law Center have any preferred lenders?
The Feldman Law Center works with a variety of lenders in California and throughout the United States.  The results vary with each lender, and the results depend upon not just the lender, but the specifics of each home loan modification.
Are all lenders willing to negotiate with the Feldman Law Center?
Yes, our home loan modification attorneys have established contacts at all major lending institutions.  These relationships have saved clients millions of dollars and kept them in their homes.
Can the Feldman Law Center assist me with properties that I’m not living in or currently renting out?
Yes, our home loan modification experts can assist you with any piece of real estate you own.
What does the Feldman Law Center look for in a client?
The Feldman Law Center can assist any individual in financial trouble, however, certain conditions do make it easier for us to help clients.  For example, ideal clients:

• Have received a notice of default (NOD)
• Are already in foreclosure
• Have an adjustable-rate mortgage that has already increased its interest rate
• Have negative amortization loans
• Are experiencing financial hardship due to bad loans and/or predatory lending

What disqualifies a client from the program?
People who have no source of income or who have no proof of hardship.
Is it too late for the Feldman Law Center to help clients who have received a Notice of Trust sale?
No, in fact the home loan modification specialists at the Feldman Law Center can prevent foreclosure up to a few days before the actual transfer sale date.
What interest rates should I expect after a home loan modification?
Firstly, results will vary from case to case.  However, most of our clients have received favorable rates between 2.5 and 5.5%.  We’ve also been able to negotiate mortgage terms, principal reductions and more.
What documents will my lender need to assess my application?
Other than the previously mentioned pay stubs and tax forms, lenders may ask for at least two months of bank statements.  However, that is strictly to determine your income.  Credit scores are never used for qualification.
Is compensation available from my lender?
No, lenders don’t offer commission as with regular loans, so there’s zero compensation involved.
Does the Feldman Law Center charge in advance?
Yes, you are paying for legal representation from the Feldman Law Center’s home loan modification attorneys.  Your payment works as a legal retainer.  However, we do offer payment plans.
How does payment work?
You can pay with cash, a cashier’s check, MasterCard or Visa credit cards.  We do our best to be flexible and work with you on payment.
How long will it take to get a response from my lender?
The average wait time is 2 to 3 months (60 to 90 days), but nothing is set in stone.  Things can vary from client to client, and some applications are processed quicker than others for a variety of reasons.

What is a foreclosure?
A foreclosure is the legal process that banks and other mortgage companies use to force the sale of your home to repay a debt (the debt being the mortgage on your home).

How long does the foreclosure process take?
In California, the process can take between 4 and 6 months to complete, but this varies on many factors including:  your debt situation; your delinquency; your neighborhood; and more.

What are my options, how do I exercise them?
The Feldman Law Center wants you to know you have several options, including a home loan modification.  However, these options are only available if you own your home, once you no longer own it, most of your options vanish.  Contact the Feldman Law Center today to find out what all of your options are.

What about these people claiming they can save my home?
When foreclosure documents are filed, they become a matter of public record and will attract various individuals claiming they can help you (bankruptcy attorneys, investors, real estate professionals, etc.).  However, as the foreclosure process is a sensitive one, you need a company with an actual track record of assisting people with staying in their homes.  The Feldman Law Center has spent years making sure average Americans such as yourself can keep their homes.

So, how can I keep my home?
The best place to start is by contacting the Feldman Law Center for your initial consultation.  We can help you assess the situation and point you in a positive direction.

Is it possible to sell my home rather than lose it to foreclosure?
Yes, it’s called a compromise sale, or more commonly known as a “short sale.”

I don't want to keep the house nor bother with trying to sell it. What would happen if I just walked away?
Forfeiting your property is one of the worse possible options, and there is still a legal process for walking away from your home.  Contact the Feldman Law Center to get a complete picture of what the consequences can be for each of your options.

What exactly happens when the bank forecloses?
The process can vary, but typically a trustee is appointed and announces the sale at an auction of your home by informing the public.  The usual announcement includes the name of the lending institution (bank, mortgage company), who the borrower(s) is/are (yourself), the amount of the overdue debt and your total indebtedness.  After a period of time, the trustee opens the bidding process; then, either someone purchases the property or it reverts back to the lending institution.  Once the property is sold or reverts back to the lender, the eviction process begins.

Who can bid on my home at the auction?
Anyone, including you, can bid at auction.

What happens if no one bids on my property?
The bank or lending institution will retake possession of your property, through eviction if necessary, and then hires a real estate agent to sell the property.

If I'm evicted, how many days notice do I get?
This varies as well, but often you will get 3 days notice!  The Feldman Law Center works tirelessly to fight for your rights as a homeowner and prevent all evictions.  However, if you don’t contact us know, we can’t help.

Is it really possible to save my home from foreclosure?
Absolutely.  If you are willing to fight for it, and if you contact the Feldman Law Center today, we can education you on your options, analyze your current situation and keep you and your family in your home.

I've missed a few mortgage payments, what happens now?
You are in danger of foreclosure.  This is the legal means that your lender can use to repossess (i.e. takeover) your home.

I received a foreclosure notice, what can I do?
Contact the Feldman Law Center, our home loan modification attorneys will work with you to keep you in your home and off the streets.  You can also:
Contact your lender to explain the situation immediately.
Stay in your home, or else it may be construed as abandonment.

Do I have any options after receiving a foreclosure notice?
You may be able to refinance the debt with a home loan modification to extend the term of your mortgage, renegotiate the interest rate and more.

How do I know if I qualify for foreclosure alternatives?
Easy, contact the Feldman Law Center and we can assess your situation and possibly start you on your way to a home loan modification.

How can I avoid foreclosure scams?
Contact a qualified, experience home loan modification company such as the Feldman Law Center.

Can the bank just kick me out of my house?
No, although they may try to make you believe they can. 

How many people actually lose their home to foreclosure?
Usually, about 5% to 7% are unable to save their homes.  Those numbers have gone up in California over the last couple of years, and the best option to stop yourself from being part of that percentage is to call the California home loan modification attorneys at the Feldman Law Center.